Head-To-Head Review: Tempus AI (NASDAQ:TEM) vs. Alignment Healthcare (NASDAQ:ALHC)

Tempus AI (NASDAQ:TEM) and Alignment Healthcare (NASDAQ:ALHC) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Volatility & Risk

Tempus AI has a beta of 3.61, meaning that its stock price is 261% more volatile than the S&P 500. Comparatively, Alignment Healthcare has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Tempus AI and Alignment Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-12.54%	-47.00%	-9.44%
Alignment Healthcare	0.59%	12.46%	2.36%

Earnings and Valuation

This table compares Tempus AI and Alignment Healthcare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$1.51 billion	8.42	-$245.03 million	($1.06)	-66.44
Alignment Healthcare	$4.94 billion	0.32	-$720,000.00	$0.13	58.15

Alignment Healthcare has higher revenue and earnings than Tempus AI. Tempus AI is trading at a lower price-to-earnings ratio than Alignment Healthcare, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 86.2% of Alignment Healthcare shares are held by institutional investors. 24.3% of Tempus AI shares are held by company insiders. Comparatively, 5.2% of Alignment Healthcare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Tempus AI and Alignment Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	1	10	11	0	2.45
Alignment Healthcare	1	6	6	0	2.38

Tempus AI currently has a consensus price target of $79.37, indicating a potential upside of 12.69%. Alignment Healthcare has a consensus price target of $14.00, indicating a potential upside of 85.19%. Given Alignment Healthcare’s higher possible upside, analysts clearly believe Alignment Healthcare is more favorable than Tempus AI.

Summary

Alignment Healthcare beats Tempus AI on 9 of the 14 factors compared between the two stocks.

About Tempus AI

Tempus AI Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus AI Inc. is based in CHICAGO.

About Alignment Healthcare

Alignment Healthcare, Inc., a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.